China Resources New Energy, the renewable energy unit of China Resources Power, targets to raise about 24.5 billion yuan ($3.62 billion) in proceeds from a Shenzhen initial public offering, according to a filing with the exchange on Thursday.
If completed at that size, the deal would rank among the largest China listings in recent years as year-to-date new listing proceeds on the country’s domestic exchanges have reached about $28.3 billion as of June 9, roughly doubling from the same period a year earlier, LSEG data showed.
The company develops and operates wind farms and photovoltaic power plants across China and serves as the group’s main renewable energy platform.
The offering will begin price consultations on June 16, with subscriptions scheduled to open on June 22, the filing showed.
China Resources New Energy plans to sell about 2.1 billion shares, or roughly 16.2% of its enlarged share capital, before any overallotment option.
Strategic investors will take half of the offering, while the remainder will be split between institutional and retail investors at an initial 70%-30% ratio, respectively, according to the filing.
Proceeds will go toward wind and solar projects with total planned investment of about 40.4 billion yuan, of which 24.5 billion yuan is expected to be funded by the IPO, the prospectus showed.
China Resources New Energy’s first-quarter net profit fell 31.1% to 1.62 billion yuan, while revenue slipped 2.8% to 6.21 billion yuan, hit by weather, curtailment and power pricing adjustments, the prospectus showed.
China International Capital Corp (CICC) and Citic Securities are acting as joint sponsors.
($1 = 6.7757 Chinese yuan)
Reuters
